By Basant El-Faramawy
Pub chain JD Wetherspoon plans to open up to 25 new managed and franchised bars over the coming year after reporting an 8.2% rise in like-for-like sales for the first quarter.
Expansion plans
The company aims to launch five to 10 managed pubs in the year to August 2027, adding to its current 797 managed sites, while growing its franchised estate from 25 to between 35 and 40 locations. Six managed pubs have already opened in the new financial year at Manchester Airport, Heathrow Airport, Crewe, Ferndown, Dibden Purlieu, and Kempston.
Sales performance
Like-for-like sales rose 8.2% in the 14 weeks to November 1, with bar sales up 9.4% and food sales up 6.8%. Growth slowed to 7.5% in the most recent five weeks compared with 8.6% in the first nine weeks of the quarter.
Chairman's outlook
Chairman Tim Martin said the company had a good start to the financial year but cautioned that profit forecasts remain highly dependent on sales growth over the remaining three quarters. The group said it is comfortable with market expectations for pre-tax profit of £76.4 million on a 53-week basis.
Profit decline and policy criticism
Pre-tax profit fell 28% to £58.6 million for the 52 weeks to July 26 as rising staff and other costs offset higher sales. Martin criticized government policies that he said widen the cost gap between pubs and supermarkets, estimating the labor cost of a pint at £1.68 in pubs versus about 15 pence in supermarkets. He argued this has contributed to pubs losing half their beer sales to supermarkets since 2000 and reduced employment in the sector.
